Chandrasekhar Committee meets set pathway to unify foreign investments norms
The K.M. Chandrashekhar committee formed to unify foreign investment norms met for the first time.
Objective: To relax entry norms for a diverse category of foreign investors such as FDI / FII/ QFI/NRI/FVCI and the like.
Two sub-panels have been set up with following objective:
- The first one will harmonize the FDI/FII categories keeping in mind that not all FII investment is short-term, and FII investments above a particular threshold should be deemed FDI.
- The second sub-committee would look to fortify Know Your Client (KYC), and process related issues. This has been mooted to do away with the registration need of FIIs with SEBI, once KYC is strengthened.
The panel discussed the feasibility of entrusting the responsibility of KYC to Qualified Depository Participants (QDPs) after elevating them to a custodial depository participant (CDP).